Sudden Boost In Gold Price – What’s Next? - Forex News by FX Leaders

Sudden Boost In Gold Price – What’s Next?

Posted Wednesday, August 9, 2017 by
Arslan Butt • 1 min read

During the Asian session, the North Korea & the United States made a huge mess in the global financial markets, causing bullish moves in the gold. Don't worry though, we have a plan to trade the gold.

During times of uncertainty, most investors consider moving their investments to gold as it is a safe haven asset. That's what everyone did during the Sydney session today. This move was in response to the Korean People’s Army spokesman declaring that North Korea was “carefully examining” plans for a missile attack on U.S. Pacific territory, which has a big U.S. military base.

Gold - Hourly Chart - Bullish Channel Resistance Gold – Hourly Chart – Bullish Channel Resistance

Remember that bullish channel breakout that we spotted a couple of days back? The same trend line breakout is likely to give us a resistance level of $1269. The immediate support prevails at $1264, but $1258 is the ultimate bullish level.

Gold Trading Plan

Despite all the uncertainties in the market, I'm not looking for a buy entry in gold because I think gold has already priced in the news. Instead, I will wait for the market to reach $1269 to enter a sell position with a stop loss above $1274 and take profit at $1259.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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